Attractive margins make many Nordic actors look at the appliances category. Recent year has seen several start ups and expansion.
The Danish chain Skousen went from a problem child to a win-win situation.
The Nordic appliances market is hot, with several start-ups and business expansion the recent year.
The Swedish appliance specialist Elon Group and Danish Skousen has chosen to enter Norway in different ways. Elon through Euronics – and franchise concept Skousen was recently presented in Norwegian media as the secret upcomer.
In Sweden, Vitvaruexperten.com, lead by former Media Markt CEO Mikael Hagman with Finnish Verkkokauppa.com as one of the partners has just launched its online business.
”It is an interesting business with good margins. We think there is a need for a more knowledge based online specialist,” Mikael Hagman told ScandinavianRetail during the summer.
His project was launched in January.
But 2011, it did not look well for Danish Skousen. Then online specialist WhiteAway Group invested in the chain and started a turnaround. Danish retail mogul Anders Holch Povlsen bought 46 percent of the Group in 2014 and it is now big online and wholesale player in whole Scandinavia.
Skousen appointed an unexpected name as CEO, the IT-engineer Jonas Dørken, who likes to say how different his company is working compared to the traditional business.
”We have a very unconventional approach to retail trade. For example, we generally do not use expensive advertising agencies and media agencies, and we do not have regional managers and district managers etc,” he says.
But in Norway, he’s known for a personal tv-commercial.
He says the e-commerce helps to draw customers into the stores. The vast majority of consumers who are looking for home appliances, research online but still want personal advice in stores.
”Skousen is more an old fashioned way to run a business because the customer trades with the owner. He is the artisan who knows everything and can give good control,” says Skousen in an interview with Dagens Naeringsliv.
Detailfolk.dk reports that every franchisee in the chain makes an average profit of a million DKK every year. And in Norway, where 15 stores have opened so far, Skousen says 15 more stores will open this year.